Best MPF fund Hong Kong: 62% wanted to switch trustees in a 2011 survey

Under the system then in force, the employer chose the MPF trustee — employees had no say. But a Convoy Financial Services survey in November 2011 found dissatisfaction with employer-chosen schemes had nearly doubled, from 13% to 23%, with only 17% satisfied; about six in ten wanted to switch trustees. With “semi-portability” due in 2012, employees were about to win the right to choose their trustee for the first time — and a wave of switching looked imminent.

How did members choose MPF funds in 2011?

A Convoy survey in November 2011 (297 respondents) found dissatisfaction with employer-chosen MPF schemes had nearly doubled to 23%, with about 62% wanting to switch trustees. Over 80% said MPF alone could not fund a comfortable retirement, but 52% would make extra monthly voluntary contributions if tax-exempt.

The survey numbers

Ten years into MPF, member engagement had jumped: awareness of preserved accounts — knowing which trustee ran them — leapt from 49% to 84%.

The policy pitch: tax breaks as the sweetener

Convoy’s chairman urged the government to add tax incentives — for example, tax-deductible premiums on self-purchased medical insurance — and to set the maximum employee voluntary-contribution rate at 5% of income with no cap on the amount. He also wanted investment restrictions relaxed, more product choice, and tidier MPF administration: online trustee platforms, electronic billing and a unified member-number format to cut operating costs and admin chaos. The chief executive welcomed tighter regulation of unlicensed salespeople ahead of semi-portability, to protect contributors.

Investment advice: caution under the euro-debt cloud

His take on the best MPF fund Hong Kong choice for 2012 was defensive: younger members could stay in long-term-growth Asia, China and Hong Kong exposure; existing balances could shift to lower-risk or guaranteed funds once markets stabilised; those nearing retirement could consider moving to low-risk funds. Compare trustee fees in the MPF education guides.